Question

Game Theory Eco 405 Homework 2 Due Februar 1. Find all the Nash equilibria you can of the following game. LC | DR T 0,1 4,2 1,1 3,1! M 3,3 0,6 1,2 -1,1 B 2,5 1,7 3,8 0,0 2. This question refers to a second-price, simultaneous bid auct bidders. Assume that the bidders' valuations are v1, V2, ..., Un, V ... > Un > 0. Bidders simultaneously submit bids, and the winne has the highest bid. The winner gets the object and pays the bid If there is a tie for highest bid, the object is assigned with

Answer 1

L	C	D	R
0,1	4*,2*	1,1	3*,1*
3*,3	0,6*	1,2	-1,1*
2,5*	1,7*	3*,8*	0,0

Nash equilibrium is (T,C), (B,D), (T,R) these all are the Nash equilibrium of this game.